MMX Confirms Investment Plan for AVX With the Conclusion of the Acquisition of Minerminas
March 03 2008 - 6:13PM
Marketwired
RIO DE JANEIRO, BRAZIL (BOVESPA: MMXM3) (TSX: XMM), pursuant to
article 157 of Law 6404/76, and CVM Instruction No. 358/02, hereby
makes the following announcement:
Further to the Public Announcement made on January 15, 2008
("Original Public Announcement"), we hereby inform that AVX
Minera��o e Participa��es Ltda. ("AVX"), a subsidiary of the
Company, has concluded the acquisition of Minerminas - Mineradora
Minas Gerais Ltda. ("Minerminas").
For the purchase of 100% of Minerminas shares, AVX will pay a
total of US$115,625,000.00, payable in 7 semi-annual consecutive
installments, which represents a saving of almost US$10 million
from the amount announced in the Original Public Announcement. The
first installment of US$16,517,857.00 has already been paid and the
six remaining installments of equal amount will be paid in the
months of July and January of each year, with the last installment
due in January 2011.
Through AVX, the Company is merging the operations of AVG and
Minerminas in order to obtain synergies and economies of scale. The
Company estimates that the integrated operations of AVX should
produce 6.1 million tonnes of iron ore in 2008 and 6.6 million
tonnes of iron ore in 2009. In this regard, the Company has
approved investments of nearly US$40.1 million to improve
operations over these two years, which alone will enable AVX to
reach production capacity of 8 million tonnes in 2010.
Meanwhile, MMX plans to increase investments for the second
stage of expansion of the operating capacity of AVX and, for this
purpose, is conducting engineering studies in order to reach
production capacity of 10 million tonnes in 2010.
For additional information, please contact ri@mmx.com.br.
Rio de Janeiro, March 3, 2008.
Luiz Rodolfo Landim Machado
Executive President and Investor Relations Officer
MMX Minera��o e Met�licos S.A.
FORWARD-LOOKING STATEMENTS: This material fact contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the
acquisition operation and the business plan, the operations and
financial performance and condition of MMX, and estimated
production and mine life of the acquired mineral project. Except
for statements of historical fact relating to MMX, certain
information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized
by words such as "plan," "expect," "project," "intend," "believe,"
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are made
taking into consideration a number of assumptions and, therefore
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
Assumptions upon which such forward-looking statements are based on
factors and events that are not within the control of MMX and there
is no assurance they will prove to be correct. Factors that could
cause actual results to vary materially from results anticipated by
such forward-looking statements include changes in market
conditions, variations in ore grade or recovery rates, risks
relating to international operations, fluctuating metal prices and
currency exchange rates, changes in project parameters, the
possibility of unanticipated costs and expenses, failure of plant,
equipment or processes to operate as anticipated, the failure to
obtain necessary licenses or permitting, the acquired mineral
project not being integrated successfully or such integration
proving more difficult, time consuming or costly than expected, and
other risks of the mining industry. Although MMX has attempted to
identify the important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
MMX undertakes no obligation to update forward-looking statements
if circumstances or management's estimates or opinions should
change, except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements.
MMX - Investor Relations Elizabeth Cruz / Gina Pinto Tel. 55 21
2555-5634 / 2555-5558 Email Contact www.mmx.com.br/ri
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